Equitable Bank’s New Deposit Machine | EQ Bank | Discussion forum

Loonie said
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So, if there is $400 billion that Cdns have in non-interest bearing accounts, and a new bank hopes to access $200 million of it (according to the article), that leaves tons of room for a lot of new Schedule One banks to possibly open.

They mention Street Capital as pending application for bank status. Is there somewhere we can look online to see where new banks might be coming down the pipeline?

One does not have to be a Schedule I bank under the Bank Act to accept deposits. Trust companies and loan companies, under the federal Trust and Loan Companies Act, can accept deposits too.

According to Financial Post article How to build a bank, Canadian banking licenses are granted by the Office of the Superintendent of Financial Institutions Canada (OSFI).

OSFI's site has a list of approved banks among their Who We Regulate page. But, I didn't find a list of pending bank applications on their site.

However, applicants seem to be required under subsection 25(2) of the Bank Act to publish a notice of their application in the Canada Gazette. I found this notice there for Street Capital's application to continue as a bank:

STREET CAPITAL FINANCIAL CORPORATION

LETTERS PATENT OF CONTINUANCE

Notice is hereby given, pursuant to subsection 25(2) of the Bank Act (Canada), that Street Capital Financial Corporation intends to file with the Superintendent of Financial Institutions, on or after October 15, 2012, an application for the Minister of Finance to issue letters patent continuing Street Capital Financial Corporation as a bank under the Bank Act (Canada), with its banking business primarily focused on residential mortgage lending as well as other consumer lending and related services.

The bank will carry on business in Canada under the name of Street Capital Bank of Canada in English and Street Capital Banque du Canada in French, and its head office will be located in Toronto, Ontario. The applicant is a subsidiary of Counsel Corporation, an Ontario corporation that will hold a significant interest in shares of the bank.

Any person who objects may submit an objection in writing to the Office of the Superintendent of Financial Institutions, at 255 Albert Street, Ottawa, Ontario K1A 0H2, on or before November 12, 2012.

Note: The publication of this Notice should not be construed as evidence that letters patent will be issued to continue Street Capital Financial Corporation as a bank. The issuance of letters patent will be dependant upon the normal Bank Act (Canada) application review process and the discretion of the Minister of Finance.

September 22, 2012

STREET CAPITAL FINANCIAL CORPORATION

I think doing Google searches for "APPLICATION TO ESTABLISH A BANK" and "LETTERS PATENT OF CONTINUANCE" against the site http://www.gazette.gc.ca would be an indirect way to locate pending bank applications.

According to Canadian Bankers Association: Banks Operating in Canada, both Schedule I and Schedule II banks can accept deposits with CDIC coverage and may be of interest.